National Health (Pharmaceutical benefits – early supply) Amendment Instrument 2017 (No. 10) (PB 103 of 2017)

Administered by Department of Health, Disability and Ageing

Legislation au F2017L01629 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (PHARMACEUTICAL BENEFITS – EARLY SUPPLY) AMENDMENT INSTRUMENT 2017 (No. 10)

PB 103 of 2017

 

Purpose

The purpose of this legislative instrument, made under subsection 84AAA(2) of the National Health Act 1953 (the Act) is to amend the National Health (Pharmaceutical benefits—early supply) Instrument 2015 (PB 120 of 2015).

 

PB 120 of 2015 specifies the pharmaceutical items that are in pharmaceutical benefits for which Pharmaceutical Benefits Scheme (PBS) safety net entitlements will not apply for early supplies, and to specify the period following previous supply.

 

Authority

Subsection 84AAA(1) of the Act provides that a supply of a pharmaceutical benefit (whether or not the supply is of a kind described in paragraph 84C(4A)(a) of the Act) to a person is an early supply of a specified pharmaceutical benefit if:

(a)   The supply is made within 20 days after the day of a previous supply to the person of:

(i)         the same pharmaceutical benefit; or

(ii)      another pharmaceutical benefit that has the same pharmaceutical item as the pharmaceutical benefit; or

(iii)    another pharmaceutical benefit that is Schedule equivalent to the pharmaceutical benefit;

whether or not the previous supply is a supply of a kind described in paragraph 84C(4A)(a) of the Act; and

(b)   The pharmaceutical item in the pharmaceutical benefit is specified in an instrument under subsection 84AAA(2); and

(c)   The supply does not result from a prescription originating from a hospital.

 

Subsection 84AAA(2) of the Act provides that the Minister may specify, by legislative instrument, pharmaceutical items for the purposes of paragraph 84AAA(1)(b) of the Act. 

 

Subsection 84AAA(3) provides that the instrument may specify a pharmaceutical item by reference to the circumstances in which a pharmaceutical benefit that has the pharmaceutical item is supplied or any other circumstances in relation to a pharmaceutical benefit that has the pharmaceutical item.

 

Paragraph 84C(4A) of the Act refers to repatriation pharmaceutical benefits supplied under the schemes established under section 91 of the Veterans Entitlements Act 1986 or section 18 of the Australian Participants in British Nuclear Tests (Treatment) Act 2006 or supplied in accordance with a determination made under paragraph 256(1)(c) of the Military Rehabilitation and Compensation Act 2004.

 

Subsection 101(3AA) of the Act requires the Pharmaceutical Benefits Advisory Committee (PBAC) to make recommendations to the Minister about what should be specified in the instrument under subsection 84AAA(2).

 

Changes to PB 120 of 2015 made by this instrument

Schedule 1 to the Principal Instrument is amended by the deletion of Testosterone in the form Transdermal solution (pump pack) 30 mg per 1.5 mL dose, 60 doses.

 

The ‘listed drug’, ‘form’, ‘manner of administration’, ‘maximum quantity or number of units’ and ‘maximum number of repeats’ for a pharmaceutical item are the same as declared and determined under the Act for pharmaceutical benefits that have a pharmaceutical item. These declarations and determinations are made in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012).

 

Therefore, a supply of a pharmaceutical benefit that has this pharmaceutical item will be an early supply of a specified pharmaceutical benefit providing the requirements of subsection 84AAA(1) are met.

 

Variation and revocation

Unless there is an express power to revoke or vary PB 120 of 2015 cited in this Instrument and explanatory statement, subsection 33(3) of the Acts Interpretation Act 1901 is relied upon to revoke or vary PB 120 of 2015.

 

Consultation

The involvement of PBAC constitutes a formal and ongoing process of consultation.  The PBAC is the independent expert body, established by section 100A of the Act, which makes recommendations to the Minister about which drugs and medicinal preparations should be available to Australians as pharmaceutical benefits.  PBAC members are selected from consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and specialists, with at least one member selected from each of those interests or professions.  The Committee also includes a pharmaceutical industry nominee.  Remaining members are persons whom the Minister is satisfied have qualifications and experience in a field relevant to the functions of the PBAC, and that would enable them to contribute meaningfully to the deliberations of the Committee.  The PBAC has provided advice regarding what should be specified in this Instrument.

 

This amendment is minor and machinery in nature.

 

General

This Instrument commences on 1 January 2018.

 

This Instrument is a legislative instrument for the purposes of the Legislation Act 2003.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

National Health (Pharmaceutical benefits – early supply) Amendment Instrument 2017 (No. 10)

(PB 103 of 2017)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Overview of the Legislative Instrument

The National Health (Pharmaceutical benefits – early supply) Amendment Instrument 2017 (No. 10) amends the National Health (Pharmaceutical benefits—early supply) Instrument 2015 which specifies the pharmaceutical items that are pharmaceutical benefits for which the Pharmaceutical Benefits Scheme (PBS) Safety Net entitlements will not apply for early supplies.

Human rights implications

This legislative instrument engages Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

The PBS is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines.  The recommendatory role of the Pharmaceutical Benefits Advisory Committee (PBAC) ensures that decisions about subsidised access to medicines on the PBS are evidence-based.

Conclusion

This Legislative Instrument is compatible with human rights because it advances the protection of human rights.

Julianne Quaine

First Assistant Secretary (Acting)
Technology Assessment and Access Division

Department of Health

Overview

The National Health (Pharmaceutical Benefits – Early Supply) Amendment Instrument 2017 (No. 10) was enacted to amend the National Health (Pharmaceutical Benefits—Early Supply) Instrument 2015. This legislative instrument, made under subsection 84AAA(2) of the National Health Act 1953, specifies the pharmaceutical items for which Pharmaceutical Benefits Scheme (PBS) safety net entitlements will not apply for early supplies. The National Health Act 1953, enacted by the Commonwealth Parliament, aims to establish a framework for health services in Australia, including the regulation of pharmaceuticals under the PBS. This particular amendment addresses the gap in the early supply of pharmaceutical benefits by modifying the list of pharmaceutical items exempt from the PBS safety net for early supplies. The Pharmaceutical Benefits Advisory Committee (PBAC) provided recommendations that form the basis for these changes, ensuring that the decisions regarding the PBS are evidence-based and aligned with the Act's objective of promoting access to affordable medicines.

Scope and Application

The National Health (Pharmaceutical Benefits – Early Supply) Amendment Instrument 2017 (No. 10) amends the National Health (Pharmaceutical benefits—early supply) Instrument 2015, specifying the pharmaceutical items for which Pharmaceutical Benefits Scheme (PBS) safety net entitlements will not apply for early supplies. This legislative instrument applies to pharmaceutical benefits supplied under the National Health Act 1953, specifically addressing early supplies of specified pharmaceutical benefits within 20 days of a previous supply of the same pharmaceutical benefit, or one that has the same pharmaceutical item or is Schedule equivalent. The amendment removes Testosterone in the form Transdermal solution (pump pack) 30 mg per 1.5 mL dose, 60 doses from the list of excluded pharmaceutical items. The Pharmaceutical Benefits Advisory Committee (PBAC) provided recommendations for the amendment, ensuring decisions are evidence-based and align with the progressive realisation of the right to the highest attainable standard of physical and mental health as recognised in the International Covenant on Economic, Social and Cultural Rights. The instrument is compatible with human rights and is effective from 1 January 2018.

Key Provisions

The National Health (Pharmaceutical Benefits – Early Supply) Amendment Instrument 2017 (No. 10) modifies the National Health (Pharmaceutical Benefits—Early Supply) Instrument 2015 (PB 120 of 2015), specifically addressing the Pharmaceutical Benefits Scheme (PBS) safety net entitlements for early supplies of certain pharmaceutical items. According to section 84AAA(2) of the National Health Act 1953 (the Act), an early supply occurs when a pharmaceutical benefit is provided within 20 days of a previous supply of the same or an equivalent pharmaceutical benefit to the same person, unless the supply originates from a hospital prescription. This legislative instrument removes testosterone in the form of a transdermal solution (pump pack) 30 mg per 1.5 mL dose, 60 doses, from the list of pharmaceutical items for which PBS safety net entitlements will not apply for early supplies. The Act imposes specific obligations on parties involved in the supply of pharmaceutical benefits. It requires that any supply of a pharmaceutical benefit, which is classified as an early supply under the conditions outlined in section 84AAA(1), must adhere to the provisions stipulated in the amended instrument. Pharmaceutical items specified in the instrument are exempt from PBS safety net entitlements for early supplies, ensuring that patients do not incur additional costs for medications supplied within a short timeframe. Failure to comply with the provisions of the National Health Act 1953 regarding the supply of pharmaceutical benefits can result in civil or criminal penalties. The Act allows for enforcement actions against parties who fail to comply with the specified requirements for early supply of pharmaceutical items. The precise nature and extent of penalties are not detailed in the explanatory statement, but they are intended to ensure adherence to the provisions governing the supply of pharmaceutical benefits. The National Health (Pharmaceutical Benefits – Early Supply) Amendment Instrument 2017 (No. 10) ensures that the Pharmaceutical Benefits Advisory Committee (PBAC) plays a pivotal role in advising the Minister on which drugs and medicinal preparations should be available as pharmaceutical benefits. The PBAC's involvement ensures that decisions about the availability and subsidy of medicines on the PBS are evidence-based, contributing to the progressive realisation of the right to the highest attainable standard of physical and mental health, as recognised in the International Covenant on Economic, Social and Cultural Rights.

Legal classification tags

Area of Law
Health Law
Instrument
Legislative Instrument
Concepts
Reporting & Disclosure Obligations
Regulatory Standards
Consultation Requirements
Catchwords
Pharmaceutical Benefits Scheme

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.